Strategies of the Development of Entrepreneurship and SME

One of the main preconditions to support start-ups in the country must beestablishment of business incubators and technoparks for this matter attracting not only state,but also international, foreign organizations, universities, research institutions. The localauthorities may assist the application of such mechanism for start-up business support in a wayof providing idle areas for establishment of business incubator and thus contributing todevelopment of cooperation between SMEs of regions and communities.Via technoparks it will be provided an excellent opportunity for efficient application ofnew technologies and working out of new scientific projects, which is very important forproduct development or enhancement of industrial processes in the country. This matter ismutually beneficial for scientists as well as for entrepreneurs from point of view of exchange ofexperience and skills considering the fact that scientific projects may be applied in businessesand in their turn entrepreneurs may use the scientific projects worked out by scientists. Theapplication of innovations and new technologies in SMEs will contribute to enhancement ofcompetitiveness of domestic products and efficient utilization of scientific-technical results andpromotion of export capacities as well.Actions should be done to simplify and facilitate starting business by removingadministrative barriers, offer education, consulting and start-up capital for necessary revival ofsmall enterprises as a natural base for the development of the whole sector of SMEs togetherwith promotion of positive attitude of the public to entrepreneurship. Special emphasis shouldbe placed on support in raising capital for SMEs and combining funds from public budgets,funds from international/foreign organizations and the financial market.To increase financial/credit opportunities for SME units as an alternative way of financialand investment support in the scope of expanding financial/credit opportunities of SME units itis essential to apply mechanisms of financial leasing and factoring operations, expandopportunities for their performance, establish investment companies, reciprocal credit unions,venture capital funds as well as develop mortgage loans practice.One of the most important tasks should be increasing the competitiveness of SMEs andpursuing a pro-export policy together with support for perspective export segments,competitive enterprises, including simplification of the procedure of customs formulations,smoothing export procedures and administration for SMEs, creation of international links,networks and clusters of SMEs to increase exports, providing specialized services in support ofexports.Another issue for SME development in the country is reduction of tax burden for SMEsand well as simplification of tax and custom administration in the country.International organizations could be a valuable asset in further development of country’seconomy and entrepreneurship as well. In this concern, SME development targeted policy andbroader international cooperation will ensure prosperity of the sphere and country’s economywith integration into the world economy.Current requirements in the national economy are described with continuous changestailored by world economy tendencies. The last ones created preconditions for reviewing legalregulatoryframework for SME sector, introduction of modern and effective criteria for SMEdefinition, declaration of new aims and tasks for the national SME policy as a basis for furtherdevelopment of this sector. It must me taken into consideration that these reforms should beimplemented considering volumes and particularities of the national economy as a priority.97